Rumor: New $399 Xbox One Model Scheduled for 2014

If you've been paying attention to the news, you've noticed a bunch of circulating rumors concerning a cheaper Xbox One.

Now, a source has informed VG24/7 that Microsoft is indeed planning to release an Xbox One model that will be priced at $399, so the system can match up with the competition; namely, the PlayStation 4. Sony's next-gen offering already sits at the more agreeable $399 price point, and that has helped the PS4 take an early sales lead. Many analysts believe cost is the primary catalyst.

As for the "senior source" cited by VG24/7, he or she couldn't confirm rumors that the Xbox One will lose its Blu-Ray drive and feature a Bluetooth adapter. Other rumors include a white Xbox One console, along with the disappointing news that Halo 5 may not make it this year.

Microsoft has not officially commented on the possibility of a cheaper game system. Currently, consumers must purchase Kinect with the Xbox One, which accounts for that extra $100. However, perhaps that's the biggest problem facing the console right now.

Price = Critical

Neither console really featured a killer launch lineup and both came out at about the same time, making price more essential. That $100 price gap may not bother some hardcore gamers but for many, it is a big deal. Furthermore, consumers don't like being forced to purchase an accessory. That should always be optional, a lesson Microsoft is learning the hard way.